Lloyd’s to apply for Malaysian onshore licence
Lloyd’s of London is to apply for an onshore licence to operate in Malaysia. The specialist reinsurance market will apply for a “Tier 1 licence”, and open an office in Kuala Lumpur, following months of discussions between the firm and the Malaysian authorities. The proposed new licence will enable Lloyd’s to increase the support it can offer in Malaysia; it already writes insurance for the country from existing locations. This new licence will give the market a significant opportunity to develop its marine, energy, construction, engineering and liability business, as well as introduce new products to the market.
Auto insurance premiums could drop 60 per cent
The auto insurance sector could face serious disruption as driverless cars become more prolific. Industry analysts say that the technology will be cut accidents and require that premiums are reduced as a result. Donald Light, head of the North America property and casualty practice for research firm Celent believes premiums could be 60 per cent lower in 15 years. Light told Bloomberg: “You have to be prepared to see that part of your business shrink, probably considerably.” However other experts cite the increased use of technology as increasingly another risk – hacking. The report notes that Fiat Chrysler recently recalled more than a million vehicles after it was discovered that hackers could take control remotely.
Asia-Pacific hotels to adopt resilience plan
The head of the UN Office for Disaster Risk Reduction (UNISDR), Margareta Wahlström, has announced a plan to develop and pilot disaster risk management standards for the hotel industry in Asia and the Pacific, home to 80% of the world’s disaster events.
Ms. Wahlström said: “The hotel industry in hazard prone areas of the world is very vulnerable to major setbacks from floods, storms and earthquakes. Such events can result in closure of resorts and have a significant impact on tourism and employment. The hotel industry has a very important role to play in encouraging disaster risk management at the local level.” The UN’s research has found a lack of universal standards for risk management for the hotel industry.
